BSc Examination by course unit

Friday 8th May 2014 14:30 - 17:00

ECN232 History of Economic Thought Duration: 2 hours

YOU ARE NOT PERMITTED TO READ THE CONTENTS OF THIS QUESTION PAPER UNTIL
INSTRUCTED TO DO SO BY AN INVIGILATOR

Answer ALL questions of Section A, TWO questions of Section

B, and ONE question of Section C
Section A carries 42 marks, Section B carries 30 marks,
Section C carries 28 mark.
If you answer more questions than specified, only the first answers (up to the specified
number) will be marked. Cross out any answers that you do not wish to be marked

Calculators are not permitted in this examination. Please state on your answer book the name
and type of machine used.

Complete all rough workings in the answer book and cross through any work that is not to be
assessed.

Possession of unauthorised material at any time when under examination conditions is an

assessment offence and can lead to expulsion from QMUL. Check now to ensure you do not have
any notes, mobile phones or unauthorised electronic devices on your person. If you do, raise your
hand and give them to an invigilator immediately. It is also an offence to have any writing of any
kind on your person, including on your body. If you are found to have hidden unauthorised material
elsewhere, including toilets and cloakrooms it will be treated as being found in your possession.
Unauthorised material found on your mobile phone or other electronic device will be considered
the same as being in possession of paper notes. A mobile phone that causes a disruption in the
exam is also an assessment offence.

EXAM PAPERS MUST NOT BE REMOVED FROM THE EXAM ROOM

Examiner: Dr Daniela Tavasci

© Queen Mary, University of London, 2014

Page 2 ECN232 (2014)

SECTION A [42 marks]

State whether the statements below are true or false and give a brief explanation in
support of your answers.

Question 1

Adam Smith supported a theory of value based on labour.

[7 marks]

Question 2

David Ricardo supported a theory of value based on scarcity.

[7 marks]

Question 3

Léon Walras supported a theory of value based on utility.

[7 marks]

Question 4

Karl Marx supported a theory of value based on labour.

[7 marks]

Question 5

Jean-Baptiste Say supported a theory of value based on utility.

[7 marks]

Question 6

The theories of value of the Austrian marginalist school and of the French marginalist
school were different.
[7 marks]
ECN232 (2014) Page 3

SECTION B [30 marks]

Answer ONLY TWO of the following questions.

Question 7

Explain the difference between aggregate demand and effective demand.

[15 marks]

Question 8

Discuss the distributional implications of Ricardo’s theories of rent and comparative

advantage.
[15 marks]

Question 9

Discuss why the marginalist school cannot be considered homogenous.

[15 marks]

Question 10

Explain Schumpeter’s relation between the banker and the entrepreneur.

[15 marks]

SECTION C [28 marks]

Answer ONLY ONE of the following questions.

Question 11

Explain first how the Fisher equation can be transformed into the Cambridge equation,
and then comment on the different meanings of the two equations according to their
respective contexts.
[28 marks]

Turn Over
Page 4 ECN232 (2014)

Question 12

Discuss, within the Mises-Hayek model, the role of government intervention and the
concept of money neutrality.
[28 marks]

End of Paper